Forms of Business Ownership
in the fashion industry

a global enterprise devoted to the business of making and selling clothes

Corporation

A legal entity that is separate from its owners, the shareholders.

Private Corporation

Limited number of shareholders and shares are not publicly traded. Shares are usually sold to close friends or family

Privately held by the Wertheimer family, in essence a family owned corporation

Pierre Wertheimer and Coco Chanel were business partners

Chanel's stocks are not for sale on the stock market and their financial information is not disclosed online

Public Corporation

Shares are publicly traded and are an unlimited amount of shareholders. Public disclosure of business operations is also required (large business)

Has a total number of 1,655,072,000 shares and provides annual reports, such as sustainability or corporate governance

Share capital: The share capital consists of 194,400,000 class 'A' shares (ten votes per share) and 1,460,672,000 class 'B* shares (1 vote per share).

Discloses their financial position and growth in their annual reports

Partnership

Two or co-owners bounds by partnership agreement. They equally share the costs and responsibilities of running the business

Co-owned by Vava Valentina and Angela Phung

Valentina is the buyer, sourcing affordable pieces for resale and keeping the store merchandised and clean

Angela is the designer and looks after the marketing, branding, and public relations of TSOQ

Bought the store together an agreement to work together

"Not even knowing each other's last names, these girls signed their lives away 7 days later...and like that they found the perfect match, just like a marriage."

Co-operative

Business owned by the workers or members who buy or use the products the business provides

Retail co-op that sells exclusively to members. Members get the best products at fair prices, access to rental gear, and free/low cost workshops

One time membership fee of $5

Goal is to encourage and inspire Canadians to live active outdoor lifestyles

Receive voting rights and share redemptions

The amount you receive in a share redemption is based on how much you spent at MEC.

As of 2018, MEC has issued 16 share redemptions and returned $35 million to members.

Over 5 million members across
Canada and 23 stores in 6 provinces

Business structure revolves around a message/value

Goal is mainly awareness, not profit

Sole Proprietorship

Owned and operated by one owner. The proprietor usually completes major tasks by them self, and is responsible for the business's profits and losses

Founded in 2007 and owned by Michelle Germain

Shopgirls was created based on Michelle's dream to spread body postivity

Shopgirls has only one location: 1342 Queen St. W., on the corner of Queen St. and Brock Ave.

Specifically showcases women’s clothing and accessories designed by Canadians

Franchise

An individual or group (franchisee) is permitted to duplicate a successful business (franchisor) in another location for a fee

More than 475 North American franchise locations (large business)

Parent company Winmark Corporation provides continuous support to ensure success

To become a Plato’s Closet franchisee...

Have equity to collateralize a loan for the remaining balance needed

Have at least 75,000 in cash or liquid assets

Prepared to invest 250,000 to 350,000